Mar 31, 2015
A. Basis of Preparation
The financial statements of Choksi Imaging Ltd. have been prepared and
presented in accordance with Indian Generally Accepted Accounting
Principles (GAAP) under the historical cost convention on the accrual
basis. GAAP comprises accounting standards notified by the Central
Government of India under Section 211 (3C) of the Companies Act, 1956,
other pronouncement of Institute of Chartered Accountants of India, the
provisions of Companies Act, 1956 The financial statements are rounded
off to the nearest Rupees lakhs.
The company has prepared these Financial Statements as per the format
prescribed in the Revised Schedule VI to the Companies Act, 1956 issued
by Ministry of Corporate Affairs.
b. Use of Estimates
The preparation of the Financial Statement in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent
liabilities on the date of the financial statement and reported amounts
of revenues and expenses for the year. Actual results could differ from
these estimates. Any revision to accounting estimates is recognized
prospectively in the current and future periods.
c. Revenue Recognition
Revenue from sale of goods is recognized when significant risks and
rewards in respect of ownership of products are transferred to
customers.
Revenue from sale of goods has been presented both gross and net of
excise duty.
Revenue from product sales is stated exclusive of returns, sales tax
and applicable trade discounts and allowances.
Revenue from sale of services is recognized when the related services
are performed and debits notes are raised.
Income from interest on deposits, loans and interest bearing securities
is recognized on the time proportionate method based on underlying
interest rates.
Insurance and other claims/refunds are accounted for as and when
admitted by appropriate authorities.
d. Valuation of Inventories
Items of inventories are measured at lower of cost and net realizable
value. Cost of inventories comprises of cost of purchase, cost of
conversion and other costs including manufacturing overheads, excluding
depreciation incurred in bringing them to their respective present
location, condition, net of Cent and VAT benefit. Cost of raw
materials, stores and spares, packing materials, trading and other
products are determined on First in First out method. Scrapes are
valued at net realizable value.
e. Contingencies and Event occurring after Balance Sheet date
Event occurring after the date of Balance sheet, which provide further
evidence of conditions that existed at the Balance Sheet date or that
arose subsequently, are considered up to the date of approval of
accounts by the Board of Directors, where material.
f. Fixed Assets and Depreciation
(a) Tangible Fixed Assets are stated at cost of acquisition inclusive
of inward freight, duties, taxes and incidental expenses related to
acquisition. In respect of construction period, related pre-operational
expenses form part of value of the assets capitalized. The purchase
cost of Fixed Assets has been considered net of CENVAT credit availed
on such purchases.
(b) Tangible Fixed Assets are stated at historical cost less
depreciation.
(c) I) Depreciation on fixed assets has been provided on a straight
line basis at the rates prescribed in Schedule XIV to the Companies
Act, 1956.
II) In respect of assets acquired/sold/discarded during the financial
period, depreciation is provided on Prorata basis with reference to the
period each assets was put to use during the financial period.
(d) Intangible Fixed Assets and Amortization.
Items of expenditure that meets the recognition criteria mentioned in
Accounting Standard - 26 on "Intangible I Assets" are classified as
intangible assets and are amortized over the period of economic
benefits. Goodwill is amortized over a period of 10 years.
Software are stated at cost of acquisition and are amortized on
straight line basis as per rates applicable.
g. Foreign Currency Transactions
Foreign currency transactions are accounted at the exchange rates
prevailing on the date of transactions. Exchange differences arising on
foreign currency transaction settled during the year are recognized in
the statement of Profit and Loss. Monetary Assets and Liabilities
denominated in foreign currency as at the Balance Sheet date are
re-stated using the Foreign Exchange rates as at Balance Sheet date.
The resultant exchange differences are recognized in the statement of
Profit and Loss.
h. Employee Benefits
(i) Short Term Benefits
a) All employee benefits including bonus/ex-gratia (incentives) payable
wholly within twelve months of rendering the service are classified as
short term employee benefits and are charged to the statement of Profit
and Loss.
(ii) Long Term Benefits
a) Post Employment Benefits
(i) Defined Contribution Plans : Retirement/Employee benefits in the
form of Provident Fund and labour welfare fund are considered as
defined contribution plan and contribution to the respective funds
administered by the Government are charged to the Profit and Loss
account of the year when the contribution to the respective funds are
due.
(ii) Gratuity: The Company provided for gratuity to all employees. The
benefit is in the form of lump sum payment to vested employees'' on
resignation, retirement ,on death while in employment or on termination
of employment of an amount equivalent to 15 days basic salary payable
for each completed year of service. Vesting occurs upon completion of
five years of service. The company makes annual contribution to funds
administered by trustees and managed by insurance companies for amounts
notified by the said insurance companies. The defined gratuity benefit
planes are valued by an independent external actuary as at the balance
sheet date using the projected unit credit method of determined the
present value of defined benefit obligation and the related services
costs. Under this method, the determination is based on actuarial
calculations. Which include assumption about demographics, early
retirement, salary increased and interest rates. Actualial gain or loss
is recognized in the profit and loss accounts. Leave salary is
accounted on payment basis.
I. Taxation
a) Current Tax: The current charge of Income-tax is calculated in
accordance with relevant tax regulations applicable to the company.
b) Deferred Tax: Deferred tax charge or credit reflects the tax effects
of timing differences between accounting income and taxable income for
the period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantially enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward
losses, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets. Deferred tax assets are
reviewed at such balance sheet date and is written down or written up
to reflect the amount that is reasonably / virtually certain (as the
case may be) to be realized. The break-up of the major components of
the deferred tax assets and liabilities as at balance sheet date has
been arrived at after setting off deferred tax assets and liabilities
where the Company has a legally enforceable right to set off assets
against liabilities and where such assets are liabilities relate to
taxes on income levied by the same governing taxation laws.
j. Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
amount exists. The company estimates the recoverable amount of the
asset. If such recoverable amount of the asset or the recoverable
amount of the cash generating unit to which the asset belongs is less
that its carrying amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an impairment loss and
is recognized in the statement of profit and loss. If at the balance
sheet date there is an indication that if a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed
and the asset is reflected at the recoverable amount subject to a
maximum of amortized historical cost.
k. Accounting for Provisions, Contingent Liabilities and Contingent
Assets
Provisions are recognized in terms of Accounting Standard -29 on
"Provisions, Contingent Liabilities and Contingent Assets" issued by
the ICAI, when there is a present legal or statutory obligation as a
result of past events leading to probable outflow of resources, where a
reliable estimate can be made to settle the same.
Contingent Liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-occurrence
of one or more uncertain future events, not wholly within the control
of the Company, or where any present obligation cannot be measured in
terms of future outflow of resources, or where a reliable estimate of
the obligation cannot be made. Obligations are assessed on an ongoing
basis and only those having a largely probable outflow of resources are
provided for.
Contingent Assets are not recognized in the Financial Statements.
l. Earning Per Share
Basic and diluted earnings per share are computed in accordance with
Accounting Standard 20 - Earnings per share. Basic earnings per share
is calculated by dividing the net profit or loss for the year
attributable to equity shareholders (after deducting attributable
taxes) by the weighted average number of equity shares outstanding
during the year.
For the purpose calculating diluted earning per share, the net profit
or loss for the year attributable to equity shareholders are the
weighted average number of shares outstanding during the year are
adjusted for the effect of dilutive potential equity shares.
m. Cash Flow Statement
(a) The Cash Flow Statement is prepared by the Indirect method set out
in Accounting Standard (AS-3) on Cash Flow Statements and presents the
cash flows by operating, investing and financing activities of the
Company.
(b) Cash and Cash Equivalents presented in the Cash Flow Statement
comprise of cash on hand and balances in current accounts and deposit
account with banks.
n. Borrowing Costs
(a) Borrowing costs that are attributable to the acquisition or
construction of an asset are capitalized as part of cost of such assets
till such time the asset is ready for its intended commercial use.
(b) Other borrowing costs are charged off to Revenue Account in the
year in which they are incurred.
o. Leased Assets
Operating lease: Asset acquired as leases where a significant portion
of risks and rewards of ownership are retained by the lessor are
classified as operating leases. Operating lease charges are recognized
in statement of Profit and Loss on a straight line basis over the lease
term.
p. Financial derivatives and Hedging Transaction
The Company uses foreign exchange forward contracts and option
contracts (derivatives) to mitigate its risk of changes in foreign
currency exchange rates and does not use them for trading or
speculative purposes.
In case of forward contracts, the difference between the forward rate
and the exchange rate, being the premium or discount at the inception
of a forward exchange contract is recognized in the profit and loss
account in the reporting period in which the rates change. Any profit
or loss arising on cancellation or renewal of forward exchange contract
is recognized as income or as expense for the period.
Mar 31, 2014
A. Basis of Preparation
The financial statements of Choksi Imaging Ltd. have been prepared and
presented in accordance with Indian Generally Accepted Accounting
Principles (GAAP) under the historical cost convention on the accrual
basis. GAAP comprises accounting standards notified by the Central
Government of India under Section 211 (3C) of the Companies Act, 1956,
other pronouncement of Institute of Chartered Accountants of India, the
provisions of Companies Act, 1956 The financial statements are rounded
off to the nearest Rupees lakhs.
The company has prepared these Financial Statements as per the format
prescribed in the Revised Schedule VI to the Companies Act, 1956 issued
by Ministry of Corporate Affairs.
b. Use of Estimates
The preparation of the Financial Statement in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent
liabilities on the date of the financial statement and reported amounts
of revenues and expenses for the year. Actual results could differ from
these estimates. Any revision to accounting estimates is recognized
prospectively in the current and future periods.
c. Revenue Recognition
Revenue from sale of goods is recognized when significant risks and
rewards in respect of ownership of products are transferred to
customers.
Revenue from sale of goods has been presented both gross and net of
excise duty.
Revenue from product sales is stated exclusive of returns, sales tax
and applicable trade discounts and allowances.
Revenue from sale of services is recognized when the related services
are performed and debits notes are raised.
Income from interest on deposits, loans and interest bearing securities
is recognized on the time proportionate method based on underlying
interest rates.
Insurance and other claims/refunds are accounted for as and when
admitted by appropriate authorities.
d. Valuation of Inventories
Items of inventories are measured at lower of cost and net realizable
value. Cost of inventories comprises of cost of purchase, cost of
conversion and other costs including manufacturing overheads, excluding
depreciation incurred in bringing them to their respective present
location, condition, net of Cenvet and VAT benefit. Cost of raw
materials, stores and spares, packing materials, trading and other
products are determined on First in First out method. Scrapes are
valued at net realizable value.
e. Contingencies and Event occurring after Balance Sheet date
Event occurring after the date of Balance sheet, which provide further
evidence of conditions that existed at the Balance Sheet date or that
arose subsequently, are considered up to the date of approval of
accounts by the Board of Directors, where material.
f. Fixed Assets and Depreciation
(a) Tangible Fixed Assets are stated at cost of acquisition inclusive
of inward freight, duties, taxes and incidental expenses related to
acquisition. In respect of construction period, related pre-operational
expenses form par* of value of the assets capitalized. The purchase
cost of Fixed Assets has been considered net of CENVAT credit availed
on such purchases.
(b) Tangible Fixed Assets are stated at historical cost less
depreciation.
(c) I) Depreciation on fixed assets has been provided on a straight
line basis at the rates prescribed in Schedule XIV to the Companies
Act, 1956.
II) In respect of assets acquired/sold/discarded during the financial
period, depreciation is provided on Prorata basis with reference to the
period each assets was put to use during the financial period.
(d) Intangible Fixed Assets and Amortization.
Items of expenditure that meets the recognition criteria mentioned in
Accounting Standard - 26 on "Intangible Assets" are classified as
intangible assets and are amortized over the period of economic
benefits. Goodwill is amortized over a period of 10 years.
Software are stated at cost of acquisition and are amortized on
straight line basis as per rates applicable.
g. Foreign Currency Transactions
Foreign currency transactions are accounted at the exchange rates
prevailing on the date of transactions. Exchange differences arising on
foreign currency transaction settled during the year are recognized in
the statement of Profit and Loss. Monetary Assets and Liabilities
denominated in foreign currency as at the Balance Sheet date are
re-stated using the Foreign Exchange rates as at Balance Sheet date.
The resultant exchange differences are recognized in the statement of
Profit and Loss.
h. Employee Benefits
(i) Short Term Benefits
a) All employee benefits including bonus/ex-gratia (incentives) payable
wholly within twelve months of rendering the service are classified as
short term employee benefits and are charted to the statement of Profit
and Loss.
(ii) Long Term Benefits
a) Post Employment Benefits
(i) Defined Contribution Plans : Retirement/Employee benefits in the
form of Provident Fund and labour welfare fund are considered as
defined contribution plan and contribution to the respective funds
administered by the Government are charged to the Profit and Loss
account of the year when the contribution to the respective funds are
due.
(ii) Gratuity: The Company provided for gratuity to all employees. The
benefit is in the form of lump sum payment to vested employees'' on
resignation, retirement ,on death while in employment or on termination
of employment of an amount equivalent to 15 days basic salary payable
for each completed year of service. Vesting occurs upon completion of
five years of service. The company makes annual contribution to funds
administered by trustees and managed by insurance companies for amounts
notified by the said insurance companies. The defined gratuity benefit
planes are valued by an independent external actuary as at the balance
sheet date using the projected unit credit method of determined the
present value of defined benefit obligation and the related services
costs. Under this method, the determination is based on actuarial
calculations. Which include assumption about demographics, early
retirement, salary increased and interest rates. Actualial gain or loss
is recognized in the profit and loss accounts. Leave encashment is
being provided on yearly basis as per rules.
i. Taxation
a) Current Tax: The current charge of Income-tax is calculated in
accordance with relevant tax regulations applicable to the company.
b) Deferred Tax: Deferred tax charge or credit reflects the tax effects
of timing differences between accounting income and taxable income for
the period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantially enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward
losses, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets. Deferred tax assets are
reviewed at such balance sheet date and is written down or written up
to reflect the amount that is reasonably / virtually certain (as the
case may be) to be realized. The break-up of the major components of
the deferred tax assets and liabilities as at balance sheet date has
been arrived at after setting off deferred tax assets and liabilities
where the Company has a legally enforceable right to set off assets
against liabilities and where such assets are liabilities relate to
taxes on income levied by the same governing taxation laws.
j. Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication amount
exists. The company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less that its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the statement of profit and loss. If at the balance sheet
date there is an indication that if a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the
asset is reflected at the recoverable amount subject to a maximum of
amortized historical cost.
k. Accounting for Provisions, Contingent Liabilities and Contingent
Assets Provisions are recognized in terms of Accounting Standard -29 on
"Provisions, Contingent Liabilities and Contingent Assets" issued by
the ICAI, when there is a present legal or statutory obligation as a
result of past events leading to probable outflow of resources, where a
reliable estimate can be made to settle the same.
Contingent Liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-occurrence
of one or more uncertain future events, not wholly within the control
of the Company, or where any present obligation cannot be measured in
terms of future outflow of resources, or where a reliable estimate of
the obligation cannot be made. Obligations are assessed on an ongoing
basis and only those having a largely probable outflow of resources are
provided for.
Contingent Assets are not recognized in the financial statements.
l. Earning Per Share
Basic and diluted earnings per share are computed in accordance with
Accounting Standard 20 - Earnings per share. Basic earnings per share
is calculated by dividing the net profit or loss for the year
attributable to equity shareholders (after deducting attributable
taxes) by the weighted average number of equity shares outstanding
during the year.
For the purpose calculating diluted earning per share, the net profit
or loss for the year attributable to equity shareholders are the
weighted average number of shares outstanding during the year are
adjusted for the effect of dilutive potential equity shares.
m. Cash Flow Statement
(a) The Cash Flow Statement is prepared by the Indirect method set out
in Accounting Standard (AS-3) on Cash Flow Statements and presents the
cash flows by operating, investing and financing activities of the
Company.
(b) Cash and Cash Equivalents presented in the Cash Flow Statement
comprise of cash on hand and balances in current accounts and deposit
account with banks.
n. Borrowing Costs
(a) Borrowing costs that are attributable to the acquisition or
construction of an asset are capitalized as part of cost of such assets
till such time the asset is ready for its intended commercial use.
(b) Other borrowing costs are charged off to Revenue Account in the
year in which they are incurred. o. Leased Assets
a) Operating lease: Asset acquired as leases where a significant
portion of risks and rewards of ownership are retained by the lessor
are classified as operating leases. Operating lease charges are
recognized in statement of Profit and Loss on a straight line basis
over the lease term.
p. Financial Derivatives and Hedging Transaction
The Company uses foreign exchange forward contracts and option
contracts (derivatives) to mitigate its risk of changes in foreign
currency exchange rates and does not use them for trading or
speculative purposes.
In case of forward contracts, the difference between the forward rate
and the exchange rate, being the premium or discount at the inception
of a forward exchange contract is recognized in the profit and loss
account in the reporting period in which the rates change. Any profit
or loss arising on cancellation or renewal of forward exchange contract
is recognized as income or as expense for the period.
Mar 31, 2013
A. Basis of Preparation
The financial statements of Choksi Imaging Ltd. have been prepared and
presented in accordance with Indian Generally Accepted Accounting
Principles (GAAP) under the historical cost convention on the accrual
basis. GAAP comprises accounting standards notified by the Central
Government of India under Section 211 (3C) of the Companies Act,1956,
other pronouncement of Institute of Chartered Accountants of India, the
provisions of Companies Act,1956. The financial statements are rounded
off to the nearest Rupees lakhs.
The company has prepared these Financial Statements as per the format
prescribed by Revised Schedule VI to the Companies Act,1956 issued by
Ministry of Corporate Affairs.
b. Use of Estimates
The preparation of the Financial Statement in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent
liabilities on the date of the financial statement and reported amounts
of revenues and expenses for the year. Actual results could differ from
these estimates. Any revision to accounting estimates is recognized
prospectively in the current and future periods.
c. Revenue Recognition
Revenue from sale of goods is recognized when significant risks and
rewards in respect of ownership of products are transferred to
customers.
Revenue from sale of goods has been presented both gross and net of
excise duty.
Revenue from product sales is stated exclusive of returns, sales tax
and applicable trade discounts and allowances.
Revenue from sale of services is recognized when the related services
are performed and debits notes are raised.
Income from interest on deposits, loans and interest bearing securities
is recognized on the time proportionate method based on underlying
interest rates.
Insurance and other claims/refunds are accounted for as and when
admitted by appropriate authorities.
d. Valuation of Inventories
Items of inventories are measured at lower of cost and net realisable
value. Cost of inventories comprises of cost of purchase, cost of
conversion and other costs including manufacturing overheads, excluding
depreciation incurred in bringing them to their respective present
location, condition, net of Cenvet and VAT benefit. Cost of raw
materials, stores and spares, packing materials, trading and other
products are determined on First in First out method. Scrap is valued
at net realisable value.
e. Contingencies and Event occurring after Balance Sheet date
Event occurring after the date of Balance sheet, which provide further
evidence of conditions that existed at the Balance Sheet date or that
arose subsequently, are considered up to the date of approval of
accounts by the Board of Directors, where material.
f. Fixed Assets and Depreciation
(a) Tangible Fixed Assets are stated at cost of acquisition inclusive
of inward freight, duties, taxes and incidental expenses related to
acquisition. In respect of construction period, related pre-operational
expenses form part of value of the assets capitalized. The purchase
cost of Fixed Assets has been considered net of CENVAT credit availed
on such purchases.
(b) Tangible Fixed Assets are stated at historical cost less
depreciation.
(c) I) Depreciation on fixed assets has been provided on a straight
line basis at the rates prescribed in Schedule XIV to the Companies
Act, 1956.
II) In respect of assets acquired/sold/discarded during the financial
period, depreciation is provided on Prorata basis with reference to the
period each assets was put to use during the financial period.
(d) Intangible Fixed Assets and Amortization.
Items of expenditure that meets the recognition criteria mentioned in
Accounting Standard  26 on
"Intangible Assets" are classified as intangible assets and are
amortized over the period of economic benefits. Goodwill is amortized
over a period of 10 years.
Intangible being Software are amortized on straight line basis over a
period of eight years.
g. Foreign Currency Transactions
Foreign currency transactions are accounted at the exchange rates
prevailing on the date of transactions. Exchange differences arising on
Foreign currency transaction settled during the year are recognized in
the statement of Profit and Loss. Monetary Assets and Liabilities
denominated in Foreign currency as at the Balance Sheet date are
re-stated using the Foreign Exchange rates as at Balance Sheet date.
The resultant exchange differences are recognized in the statement of
Profit and Loss.
h. Employee Benefits
(i) Short Term Benefits
a) All employee benefits including bonus/ex-gratia (incentives) payable
wholly within twelve months of rendering the service are classified as
short term employee benefits and are charged to the statement of Profit
and Loss.
(ii) Long Term Benefits
a) Post Employment Benefits
(i) Defined Contribution Plans : Retirement/Employee benefits in the
form of Provident Fund and labour welfare fund are considered as
defined contribution plan and contribution to the respective funds
administered by the Government are charged to the statement of profit
and loss of the year when the contribution to the respective funds are
due.
(ii) Gratuity : The Company provides for gratuity to all employees. The
benefit is in the form of lump sum payment to vested employees on
resignation, retirement, on death while in employment or on termination
of employment of an amount equivalent to 15 days basic salary payable
for each completed year of service. Vesting occurs upon completion of
five years of service. The company makes annual contribution to funds
administered by trustees and managed by insurance companies for amounts
notified by the said insurance companies. The defined gratuity benefit
plans are valued by an independent external actuary as at the balance
sheet date using the projected unit credit method of determined the
present value of defined benefit obligation and the related service
costs. Under this method, the determination is based on actuarial
calculations, which include assumption about demographics, early
retirement, salary increased and interest rates. Actuarial gain or loss
is recognized in the profit and loss account. Leave encashment is being
provided on yearly basis as per rules.
i. Taxation
a) Current Tax : The current charge of Income-tax is calculated in
accordance with relevant tax regulations applicable to the company.
b) Deferred Tax : Deferred tax charge or credit reflects the tax
effects of timing differences between accounting income and taxable
income for the period. The deferred tax charge or credit and the
corresponding deferred tax liabilities or assets are recognized using
the tax rates that have been enacted or substantially enacted by the
balance sheet date. Deferred tax assets are recognized only to the
extent there is reasonable certainty that the assets can be realized in
future; however, where there is unabsorbed depreciation or carry
forward losses, deferred tax assets are recognized only if there is a
virtual certainty of realization of such assets. Deferred tax assets
are reviewed at such balance sheet date and are written down or written
up to reflect the amount that is reasonably / virtually certain (as the
case may be) to be realized. The break-up of the major components of
the deferred tax assets and liabilities as at balance sheet date has
been arrived at after setting off deferred tax assets and liabilities
where the Company has a legally enforceable right to set off assets
against liabilities and where such assets are liabilities relate to
taxes on income levied by the same governing taxation laws.
j. Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication amount
exists. The company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less that its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the statement of profit and loss. If at the balance sheet
date there is an indication that if a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the
asset is reflected at the recoverable amount subject to a maximum of
amortised historical cost.
k. Accounting for Provisions, Contingent Liabilities and Contingent
Assets
Provisions are recognized in terms of Accounting Standard -29 on
"Provisions, Contingent Liabilities and Contingent Assets", when there
is a present legal or statutory obligation as a result of past events
leading to probable outflow of resources, where a reliable estimate can
be made to settle the same.
Contingent Liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-occurrence
of one or more uncertain future events, not wholly within the control
of the Company, or where any present obligation cannot be measured in
terms of future outflow of resources, or where a reliable estimate of
the obligation cannot be made. Obligations are assessed on an ongoing
basis and only those having a largely probable outflow of resources are
provided for.
Contingent Assets are not recognized in the financial statements.
l. Earning Per Share
Basic and diluted earnings per share are computed in accordance with
Accounting Standard 20 Â Earnings per share. Basic earnings per share
is calculated by dividing the net profit or loss for the year
attributable to equity shareholders (after deducting attributable
taxes) by the weighted average number of equity shares outstanding
during the year.
For the purpose calculating diluted earning per share, the net profit
or loss for the year attributable to equity shareholders are the
weighted average number of shares outstanding during the year are
adjusted for the effect of dilutive potential equity shares.
m. Cash Flow Statement
(a) The Cash Flow Statement is prepared by the Indirect method set out
in Accounting Standard (AS- 3) on Cash Flow Statements and presents the
cash flows by operating, investing and financing activities of the
Company.
(b) Cash and Cash Equivalents presented in the Cash Flow Statement
comprise of cash on hand and balances in current accounts and deposit
account with banks.
n. Borrowing Costs
(a) Borrowing costs that are attributable to the acquisition or
construction of an asset are capitalized as part of cost of such assets
till such time the asset is ready for its intended commercial use.
(b) Other borrowing costs are charged off to Revenue Account in the
year in which they are incurred.
o. Leased Assets
a) Operating lease : Assets acquired as leases where a significant
portion of risks and rewards of ownership are retained by the lessor
are classified as operating leases. Operating lease charges are
recognized in statement of Profit and Loss on a straight line basis
over the lease term.
p. Financial Derivatives Transaction
The Company uses foreign exchange forward contracts and option
contracts (derivatives) to mitigate its risk of changes in foreign
currency exchange rates and does not use them for trading or
speculative purposes.
In case of forward contracts, the difference between the forward rate
and the exchange rate, being the premium or discount at the inception
of a forward exchange contract is recognized in the profit and loss
account in the reporting period in which the rates change. Any profit
or loss arising on cancellation or renewal of forward exchange contract
is recognized as income or as expense for the period.
Mar 31, 2012
A. Basis of Preparation
The Financial Statements of Choksi Imaging Ltd. ("the Company") have
been prepared and presented in accordance with Indian Generally
Accepted Accounting Principles (GAAP) under the historical cost
convention on the accrual basis. GAAP comprises accounting standards
notified by the Central Government of India under Section 211 (3C) of
the Companies Act,1956, other pronouncements of Institute of Chartered
Accountants of India, the provisions of Companies Act,1956 and
guidelines issued by Securities and Exchange Board of India. The
Financial Statements are rounded off to the nearest Rupees lakhs.
The Company has prepared these Financial Statements as per the format
prescribed in the Revised Schedule VI to the Companies Act,1956 ('the
schedule') issued by Ministry of Corporate Affairs. Previous periods
figures have been recast/restated to confirm to the classification
required by the Revised Schedule VI.
b. Use of Estimates
The preparation of the Financial Statement in conformity with GAAP
requires Management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent
liabilities on the date of the Financial Statement and reported amounts
of revenues and expenses for the year. Actual results could differ from
these estimates. Any revision to accounting estimates is recognized
prospectively in the current and future periods.
c. Revenue Recognition
Revenue from sale of goods is recognised when significant risks and
rewards in respect of ownership of products are transferred to
customers. Revenue from domestic sales is recognized on delivery of
products to customers, from the factory and depots of the Company.
Revenue from export sales is recognised when the significant risks and
rewards of ownership of products are transferred to the customers,
which is based upon the terms of the applicable contract. Revenue from
sale of goods has been presented both gross and net of excise duty.
Revenue from product sales is stated exclusive of returns, sales tax
and applicable trade discounts and allowances.
Dividend income is recognised when the unconditional right to receive
the income is established. Income from interest on deposits, loans and
interest bearing securities is recognized on the time proportionate
method based on underlying interest rates.
Export entitlements are recognised as income when the right to receive
credit as per the terms of the scheme is established in respect of the
exports made and where there is no significant uncertainty regarding
the ultimate collection of the relevant export proceeds.
Insurance and other claims/refunds are accounted for as and when
admitted by appropriate authorities.
d. Valuation of Inventories
(a) Inventories of raw materials, packing materials and spares are
valued at cost. The cost includes the purchase price as well as
incidental expenses and is net of CENVAT and VAT benefit available, if
any.
(b) The stock of scrap is valued at realisable value.
(c) For valuation of finished goods the cost is determined by taking
materials, labour and related factory overheads excluding depreciation.
(d) The goods in transit are stated at actual cost upto the date of
Balance Sheet.
(e) Finished goods lying with the consignment agent are valued at cost.
e. Contingencies and Event occurring after Balance Sheet date
Event occurring after the date of Balance Sheet, which provide further
evidence of conditions that existed at the Balance Sheet date or that
arose subsequently, are considered up to the date of approval of
accounts by the Board of Directors, where material.
f. Fixed Assets
(a) Fixed Assets are stated at cost of acquisition inclusive of inward
freight, duties, taxes and incidental expenses related to acquisition.
In respect of construction period, related pre- operational expenses
form part of value of the assets capitalised. The purchase cost of
Fixed Assets has been considered net of CENVAT Credit availed on such
purchases.
(b) Tangible Fixed Assets are stated at historical cost less
depreciation.
(c) Intangible Fixed Assets and Amortisation:
Items of expenditure that meets the recognition criteria mentioned in
Accounting Standard - 26 on "Intangible Assets" are classified as
intangible assets and are amortised over the period of economic
benefits. Goodwill is amortised over a period of 10 years.
Software are stated at cost of acquisition and are amortised on
straight line basis as per rates applicable.
g. Depreciation
(a) Depreciation on fixed assets has been provided on a straight line
basis at the rates prescribed in Schedule XIV to the Companies Act,
1956.
(b) In respect of assets acquired/sold/discarded during the financial
period, depreciation is provided on Prorata basis with reference to the
period each asset was put to use during the financial period.
h. Foreign Currency Transactions
Foreign currency transactions are accounted at the exchange rates
prevailing on the date of transactions. Foreign currency monetary items
outstanding as at the Balance Sheet date are reported using the closing
rate. Gains and losses resulting from the settlement of such
transaction and translation of monetary assets and liabilities
denominated in foreign currencies are recognised in the Profit and Loss
Account.
i. Employee Benefits
(i) Short Term Benefits
All employee benefits including bonus/ex-gratia (incentives) payable
wholly within twelve months of rendering the service are classified as
short term employee benefits and are charted to the Profit and Loss
Account of the year.
(ii) Long Term Benefits
Post Employment Benefits
(i) Defined Contribution Plans : Retirement/Employee benefits in the
form of Provident Fund and labour welfare fund are considered as
defined contribution plan and contribution to the respective funds
administered by the Government are charged to the Profit and Loss
account of the year when the contribution to the respective funds are
due.
(ii) The Company has also set up an Employees Gratuity fund through
Group Gratuity and Life Assurance Scheme of the Life Insurance
Corporation of India. The contribution to the fund are charged to
revenue every year. Leave encashment is being made on yearly basis as
per rules.
j. Taxation
Current tax is determined as the amount of tax payable to the taxation
authorities in respect of taxable income for the period. Deferred tax
is recognized, subject to the consideration of prudence, on timing
difference being differences between taxable incomes and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods.
k. Impairment of Assets
The carrying amount of assets is reviewed at each Balance Sheet date if
there is any indication of impairment based on internal/external
factors. An impairment loss is recognised wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the asset's net selling price and value in use.
I. Accounting for Provisions, Contingent Liabilities and Contingent
Assets
Provisions are recognised in terms of Accounting Standard- 29 on
"Provisions, Contingent Liabilities and Contingent Assets" issued by
the ICAI, when there is a present legal or statutory obligation as a
result of past events leading to probable outflow of resources, where a
reliable estimate can be made to settle the same.
Contingent Liabilities are recognised only when there is a possible
obligation arising from past events due to occurrence or non-occurrence
of one or more uncertain future events, not wholly within the control
of the Company, or where any present obligation cannot be measured in
terms of future outflow of resources, or where a reliable estimate of
the obligation cannot be made. Obligations are assessed on an ongoing
basis and only those having a largely probable outflow of resources are
provided for. Contingent Assets are not recognised in the Financial
Statements.
m. Earning Per Share
Basic and diluted Earnings Per Share are computed in accordance with
Accounting Standard- 20 Earnings Per Share. Basic earnings per share is
calculated by dividing the net profit or loss for the year attributable
to equity shareholders (after deducting attributable taxes) by the
weighted average number of equity shares outstanding during the year.
For the purpose calculating diluted Earning Per Share, the net profit
or loss for the year attributable to equity shareholders are the
weighted average number of shares outstanding during the year are
adjusted for the effect of dilutive potential equity shares.
n. Cash Flow Statement
(a) The Cash Flow Statement is prepared by the Indirect method set out
in Accounting Standard (AS-3) on Cash Flow Statements and presents the
cash flows by operating, investing and financing activities of the
Company.
(b) Cash and Cash Equivalents presented in the Cash Flow Statement
comprise of cash on hand and balances in current accounts and deposit
account with banks.
o. Borrowing Costs
(a) Borrowing costs that are attributable to the acquisition or
construction of an asset are capitalised as part of cost of such assets
till such time the asset is ready for its intended commercial use.
(b) Other borrowing costs are charged off to Revenue Account in the
year in which they are incurred.
p. Excise Duty
The Company is providing liability for Excise Duty on finished goods
manufactured and lying in factory premises pending clearance.
Mar 31, 2010
I) Accounting Convention:
The Company maintains accounts on historical cost convention in
accordance with applicable standards. The current assets, loans and
advances and liabilities are approximately of the value stated, if
realised in the ordinary course of business, otherwise those stated
separately.
ii) Recognition of Income and Expenditure:
Revenues/Income and Costs/Expenditure are generally recognised on
accrual as they are earned or incurred.
iii) Valuation of Inventories:
(a) Inventories of raw materials, packing materials and spares are
valued at cost.
(b) The stock of scrap is valued at realisable value.
(c) For valuation of finished goods the cost is determined by taking
materials, labour and related factory overheads excluding depreciation.
(d) The goods in transit are stated at actual cost upto the date of
Balance Sheet.
(e) Finished goods lying with the consignment agent is valued at cost.
iv) Fixed Assets:
a) Fixed Assets are stated at cost of acquisition inclusive of inward
freight, duties, taxes and incidental expenses related to acquisition.
In respect of construction period, related pre-operational expenses
form part of value of the assets capitalised. The purchase cost of
Fixed Assets has been considered net of CENVAT credit availed on such
purchases.
b) Tangible Fixed Assets are stated at historical cost less
depreciation.
v) Depreciation:
a) Depreciation on fixed assets has been provided on a straight line
basis at the rates prescribed in Schedule XIV to the Companies Act,
1956.
b) In respect of assets acquired/sold/discarded during the financial
period, depreciation is provided on Prorata basis with reference to the
period each assets was put to use during the financial period.
vi) Foreign Currency Transactions:
Transactions in foreign currencies to the extent not covered by forward
contracts, are accounted at the prevailing exchange rate on the date of
the transaction. Gains and losses arising out of subsequent
fluctuations in exchange rates are accounted for on realisation,
conversion losses and gains at the year end in respect of current
assets and current liabilities are dealt with in the Profit and Loss
Account under appropriate head.
vii) Taxation:
Current tax is determined as the amount of tax payable to the taxation
authorities in respect of taxable income for the period. Deferred tax
is recognised, subject to the consideration of prudence, on timing
difference being differences between taxable incomes and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods.
viii) Retirement Benefits:
Provident fund is accrued on monthly basis in accordance with the terms
of contract with the employees and is deposited with the Statutory
Provident Fund. The company has also set up an Employees Gratuity fund
through Group Gratuity and Life Assurance scheme of the Life Insurance
Corporation of India. The contributions to the fund are charged to
revenue every year. Leave encashment is being made on yearly basis as
per rules.
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